China’s Reforms – Now Comes the Hard Part

Back in August, when Communist Party chief Xi Jinping – then the leader-in-waiting — dropped out of public view, cancelling meetings with U.S. Secretary of State Hillary Clinton and other visiting dignitaries on short notice, there was no official explanation, leading to more than a little speculation about his health. Privately officials described him as having hurt his back while swimming.

Reuters

In this handout photo released by TaKungPao.com on December 10, 2012, China’s Vice President Xi Jinping (front, 4th R) looks on as a wreath of flowers is offered to a bronze statue of China’s late paramount leader Deng Xiaoping on Lianhua hill in Shenzhen, Guangdong province, December 8, 2012.

Perhaps a water mishap is still in his thoughts. This week, on his first official tour since he became the Communist Party’s general secretary, Mr. Xi urged his comrades to show courage and continue to push ahead with reforms, even though they are now heading for the “deep water” section. As far as reforms go, now comes the hard part, he was saying.

Since taking the reins of the Communist Party last month, Mr. Xi has chosen his words — and his symbols — carefully.

Advertisement

Despite his princeling background, he has tried to show a common touch. His dress, at least for his television audience, is casual and his speech has a far more natural and unrehearsed quality than that of his predecessor Hu Jintao, who admittedly was hardly known for spontaneity.

Mr. Xi’s first tour outside of Beijing since taking the top job was to Guangdong – which spearheaded China’s economic reforms and was the destination of former paramount leader Deng Xiaoping when he chose to kickstart reforms in 1992. When Mr. Deng went on his now famous “Southern Tour,” reforms appeared to have lost momentum in the wake of the 1989 Tiananmen crackdown.

On camera Mr. Xi was shown taking notes in meetings with local officials. Winding up his visit, Mr. Xi made it clear that the Deng image was very much on his mind, placing a floral basket at a statue of the late leader in a park in Shenzhen and symbolically planting a tree nearby. He left no room for doubt of the intended comparison, saying this was a sign of the importance of continuing Deng’s work. He spoke of not wasting opportunities, daring to “chew the hard bones” and “smashing conceptual barriers.”

So far he hasn’t signaled which of those “hard bones” he is willing to chew on. Will he chip away at the state sector’s dominant role in key sectors of the economy? This would mean taking on firmly entrenched special interests. Will he make a serious effort to turn away from the old Beijing playbook of using government investment to drive economic growth?

Will he make a stab at legal reforms or a serious effort to protect land of the nation’s farmers? And will he make more than a token effort at holding back official corruption and use institutions to do the heavy lifting instead of a headline-grabbing campaign that can fade away when attention shifts elsewhere? There are some encouraging signs so far, but it’s still early days.

Back in Beijing, Mr. Xi’s senior party colleagues will soon have a chance to set the tone on the economic front. The annual Economic Work Conference is expected to get under way soon and that could reveal more signs of the general course for the economy.

But Mr. Xi will find that in some areas at least it may be tough to follow in the footsteps of Mr. Deng. In the deep water section, it’s harder to “cross the river by feeling the stones.” ((LINK: http://blog.chinesehour.com/?p=815))

About China Real Time Report

China Real Time Report is a vital resource for an expanding global community trying to keep up with a country changing minute by minute. The site offers quick insight and sharp analysis from the wide network of Dow Jones reporters across Greater China, including Dow Jones Newswires’ specialists and The Wall Street Journal’s award-winning team. It also draws on the insights of commentators close to the hot topic of the day in law, policy, economics and culture. Its editors can be reached at chinarealtime@wsj.com.